US Economy: Ebbs and Flows

Taking the month of January to reflect on economic ebbs and flows in America over 2017 we find a lot of conflicting data that leaves us with a somewhat inconclusive picture on how the economy in the region is faring. Still, it’s good that there are a lot of positive indicators for financial stability and economic growth in 2018.

When there is talk of a country having a strong economy, Forbes contributor Salvatore Babones assesses this to mean that there is more capital entering the country than leaving it (as there is a large trade deficit).

Who, and what, is responsible for this? it’s hard to say given that when Trump came into office, he was able to enjoy the “longest uninterrupted stretch of private sector job growth ever recorded.” So it cannot really be attributed to our President.

Having said that, last year American stocks returned a staggering 20 percent. Given that the new tax law is lowering corporate rates, companies are being encouraged to bring back some of the monies that they had overseas in an effort to not have to encounter inhibitive taxes. As the money comes back to America there are additional M&As, dividend payments and stock buybacks happening.

In other positive news in Q4 2017 the economy encountered its fastest growth since 2015. This has resulted in greater spending from a heightened consumer confidence.